The Centre on Monday introduced in the Rajya Sabha the Mediation Bill, 2021, which institutionalises the Alternative Dispute Resolution (ADR) mechanism of pre-litigation mediation in matters of civil or commercial dispute before parties approach a court or a tribunal. Minister of State for Law and Justice SP Baghel, who introduced the Bill, recommended that the Bill be sent to the departmental Standing Committee headed by veteran BJP member Sushil Kumar Modi.

The Bill promises an effective dispute resolution process. Union Law Minister Kiran Rijiju said the legislation can have a significant impact on the economy and doing business in the country. Section 6 of the Bill says that any party before filing any suit or proceedings of civil or commercial nature in any court, shall take steps to settle the dispute by pre-litigation mediation in accordance with the provisions of the proposed law.

The Bill provides for the establishment of the Mediation Council of India. The objectives of the Council would be to promote mediation and to develop India as a robust centre for domestic and international mediation, make regulations for registration of mediators, grade mediation service providers, specify criteria for recognition of mediation institutes and mediation service providers.

ADR mechanism

Rijiju said there is a need to promote Alternative Dispute Resolution by institutional mediation. He said the ADR mechanism of mediation finds mention in various existing laws, but there is no comprehensive law governing the various aspects of mediation. “Mediation results in amicable resolution of disputes in civil, commercial, family and matrimonial matters and fosters collaborative approach, reduces the burden on the courts, and preserves relationships amongst disputants. Therefore, bringing a comprehensive mediation law and providing for online mediation may serve the interests of all the stakeholders as effective alternative mechanism for resolving disputes,” he said.The Bill subsumes conciliation under Part III of the Arbitration and Conciliation Act, 1996, and uses “conciliation” and “mediation” interchangeably. Section 4 says that “mediation” shall be a process, whether referred to by the expression mediation, pre-litigation mediation, online mediation, community mediation, conciliation or an expression of similar import, whereby party or parties, request a third person referred to as mediator or mediation service provider to assist them in their attempt to reach an amicable settlement of a dispute.

The first schedule of the Act provides an indicative list of matters which are not fit for mediation. This include disputes which by virtue of any law for the time being in force may not be submitted for mediation, disputes involving allegations of serious and specific fraud, fabrication of documents, forgery, impersonation, coercion, disputes relating to claims against minors, deities; persons with intellectual disabilities, disputes involving prosecution for criminal offences, proceedings before various Commissions and appellate tribunals, land acquisition and determination of compensation under land acquisition laws, or any provision of law providing for land acquisition and any other subject-matter of dispute which may be notified by the Centre.

Deadline

The Bill sets a period of 180 days for completing the mediation process which is further extendable to a maximum period of 180 days with the mutual consent of the parties. The mediated settlement agreement resulting from mediation which will be final and binding and will be enforceable in accordance with the provisions of Code of Civil Procedure, 1908, in the same manner as if it were a judgment or decree of a Court, Rijijju added.

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